What is the guarantee that my customer will give volumes in the future, if I give him discounts today?

There is no guarantee!!!

We have actually received promises of huge "volumes" of training programs in the future from clients whose bio datas were floating around on job portals. Two weeks later they have put in their resignations and we have felt like fools. By then the discount had already been given

There is a way however. Offer the discount on a staggered basis as and when the volumes actually materialise.

One of our financial services clients gave us this idea. It was a superb example of negotiating with the right amount of maturity and transparency between both parties. Our client was not sure about the volumes he could offer to us. And the relationship was strong. So he suggested a staggered pricing model as follows:

5 units per month - Rs 100 (eg)

6-10 units per month - 10% discount.

10-15 units per month - 25% discount.

Review to be done every six months and the excess payments adjusted through discounts in the next bill.

Brilliant right?

Try it out.

............idea suggested by our very good friend from a financial services company.